(Bloomberg) -- Commodity prices — and especially crude oil — will hinge on China's reopening after Lunar New Year celebrations later this month, according to Goldman Sachs Group Inc.
“What is the best reopening play? It is oil,” Jeff Currie, the bank's global head of commodities research said in a Bloomberg Television interview Wednesday. “What is idled? Planes, trains and automobiles. You turn them all back on, that's going to be a big pop in oil demand.”
A barrel of Brent oil could reach $110 by the third quarter if China and other Asian economies fully reopen from coronavirus restrictions, Currie said. Futures are trading above $82 a barrel on Wednesday.
Copper, which this week rose above $9,000 a ton for the first time since June, is likely to top $11,500 a ton by the end of 2023, Currie added. In the long run, copper could reach $15,000 a ton, in line with Trafigura Group's projections.
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